Dear Friends,
Seasons greetings To You,
Best Regards,
Ashish
From India, Mumbai
6Seasons greetings To You,
All of you (Our Seniors and my colleagues ) who are related to compensation and salary subject are requested to contribute in this topic.
Now is the time to think and therefater give suggestions to Top Management regarding the possible hike in salary .
For these reasons, I am posting some basic data that would kickstart the thinking process within yourself.
When we think about Indian scenarios we should definately think about Global scene. The global economy will be sailing at slow pace and the risk of world economy has increased significantly. The continued problems in US and european financial sectors are adding pressures to already rising inflationery issues. There is an upward pressure on prices basically due to rising Oil and food prices. The outlook of the financial crisis that started in September08 in the US and Europe have forced many banks to write off assets worth many billions of dollars with more news pouring to us on daily basis. This will erode the asset quality further as there are chances of slow growth rate everywhere. Europe is under pressure due to tough monetary conditions and higher inflation due to number of assets getting eroded in countries like Ireland,spain,etc. Thus europe will suffer as export will take a dip due to less demand from US.
Asian countries will get affected due to the ripple effect getting created in US and europe. The domestic demand of commodities and services is still large in countries like China,India but due to export activites getting slowed down to US and Europe the growth will be affected.
The GDP(%) of of India in 2007 was at 8.8% while in 2008 it is expected at around 7.8% and in 2009 it is expected at around 7.4%. Leading economists and experts from the world say that India's economy will grow at slow pace. The services sector maintained its growth rate at 10.3% in the year 2007-08. As compared to service sector the performance from manufacturing was considerably less. It was 4% in March 2008 as against 14.4% in March 07.
In the month of June-08 we saw inflation brushing at 11%.In order to curb the inflation we saw many measures taken by the govt. The Govt. hiked petrol and diesel prices by Rs.5/- and Rs.3/- respectively. The RBI has hiked the CRR by 50 basis point and the short term lending rate by a similar margin to curb inflation.
In India 300 million people are employed in agriculture. Software and BPO industries employ around 2.5 million people. The Unemployment % was roughly around 7.9% in 2007. In 2008 it is estimated at 7.3%.
The Increments that were payed in 2007 were in the range of 14% to 16% for Executive and management personnel. For Bluecollar personnel the Incremental value stood at 12.55% to 13.5%.
Hence, on the above basis what should be the compensation hike that we can propose to our Organisation. We have to keep in mind the Industry type where we are operating,the region where we are doing the business, the demand of products that we are achieving to increase, the market share whether is getting shrinked or expanded,etc.
i request all of you to contribute your views even if thet are wrong. This will certainly help ourselves to suggest good measures to our respective organisation.
Now is the time to think and therefater give suggestions to Top Management regarding the possible hike in salary .
For these reasons, I am posting some basic data that would kickstart the thinking process within yourself.
When we think about Indian scenarios we should definately think about Global scene. The global economy will be sailing at slow pace and the risk of world economy has increased significantly. The continued problems in US and european financial sectors are adding pressures to already rising inflationery issues. There is an upward pressure on prices basically due to rising Oil and food prices. The outlook of the financial crisis that started in September08 in the US and Europe have forced many banks to write off assets worth many billions of dollars with more news pouring to us on daily basis. This will erode the asset quality further as there are chances of slow growth rate everywhere. Europe is under pressure due to tough monetary conditions and higher inflation due to number of assets getting eroded in countries like Ireland,spain,etc. Thus europe will suffer as export will take a dip due to less demand from US.
Asian countries will get affected due to the ripple effect getting created in US and europe. The domestic demand of commodities and services is still large in countries like China,India but due to export activites getting slowed down to US and Europe the growth will be affected.
The GDP(%) of of India in 2007 was at 8.8% while in 2008 it is expected at around 7.8% and in 2009 it is expected at around 7.4%. Leading economists and experts from the world say that India's economy will grow at slow pace. The services sector maintained its growth rate at 10.3% in the year 2007-08. As compared to service sector the performance from manufacturing was considerably less. It was 4% in March 2008 as against 14.4% in March 07.
In the month of June-08 we saw inflation brushing at 11%.In order to curb the inflation we saw many measures taken by the govt. The Govt. hiked petrol and diesel prices by Rs.5/- and Rs.3/- respectively. The RBI has hiked the CRR by 50 basis point and the short term lending rate by a similar margin to curb inflation.
In India 300 million people are employed in agriculture. Software and BPO industries employ around 2.5 million people. The Unemployment % was roughly around 7.9% in 2007. In 2008 it is estimated at 7.3%.
The Increments that were payed in 2007 were in the range of 14% to 16% for Executive and management personnel. For Bluecollar personnel the Incremental value stood at 12.55% to 13.5%.
Hence, on the above basis what should be the compensation hike that we can propose to our Organisation. We have to keep in mind the Industry type where we are operating,the region where we are doing the business, the demand of products that we are achieving to increase, the market share whether is getting shrinked or expanded,etc.
i request all of you to contribute your views even if thet are wrong. This will certainly help ourselves to suggest good measures to our respective organisation.
Best Regards,
Ashish
From India, Mumbai
44 Views and no comments, nor any guidance from our esteemed members yet ?
ajsahib
================================================
Dear Friends,
Seasons greetings To You,
Best Regards,
Ashish[/quote]
From India, Mumbai
ajsahib
================================================
Dear Friends,
Seasons greetings To You,
All of you (Our Seniors and my colleagues ) who are related to compensation and salary subject are requested to contribute in this topic.
Now is the time to think and therefater give suggestions to Top Management regarding the possible hike in salary .
For these reasons, I am posting some basic data that would kickstart the thinking process within yourself.
When we think about Indian scenarios we should definately think about Global scene. The global economy will be sailing at slow pace and the risk of world economy has increased significantly. The continued problems in US and european financial sectors are adding pressures to already rising inflationery issues. There is an upward pressure on prices basically due to rising Oil and food prices. The outlook of the financial crisis that started in September08 in the US and Europe have forced many banks to write off assets worth many billions of dollars with more news pouring to us on daily basis. This will erode the asset quality further as there are chances of slow growth rate everywhere. Europe is under pressure due to tough monetary conditions and higher inflation due to number of assets getting eroded in countries like Ireland,spain,etc. Thus europe will suffer as export will take a dip due to less demand from US.
Asian countries will get affected due to the ripple effect getting created in US and europe. The domestic demand of commodities and services is still large in countries like China,India but due to export activites getting slowed down to US and Europe the growth will be affected.
Asian countries will get affected due to the ripple effect getting created in US and europe. The domestic demand of commodities and services is still large in countries like China,India but due to export activites getting slowed down to US and Europe the growth will be affected.
The GDP(%) of of India in 2007 was at 8.8% while in 2008 it is expected at around 7.8% and in 2009 it is expected at around 7.4%. Leading economists and experts from the world say that India's economy will grow at slow pace. The services sector maintained its growth rate at 10.3% in the year 2007-08. As compared to service sector the performance from manufacturing was considerably less. It was 4% in March 2008 as against 14.4% in March 07.
In the month of June-08 we saw inflation brushing at 11%.In order to curb the inflation we saw many measures taken by the govt. The Govt. hiked petrol and diesel prices by Rs.5/- and Rs.3/- respectively. The RBI has hiked the CRR by 50 basis point and the short term lending rate by a similar margin to curb inflation.
In India 300 million people are employed in agriculture. Software and BPO industries employ around 2.5 million people. The Unemployment % was roughly around 7.9% in 2007. In 2008 it is estimated at 7.3%.
In the month of June-08 we saw inflation brushing at 11%.In order to curb the inflation we saw many measures taken by the govt. The Govt. hiked petrol and diesel prices by Rs.5/- and Rs.3/- respectively. The RBI has hiked the CRR by 50 basis point and the short term lending rate by a similar margin to curb inflation.
In India 300 million people are employed in agriculture. Software and BPO industries employ around 2.5 million people. The Unemployment % was roughly around 7.9% in 2007. In 2008 it is estimated at 7.3%.
The Increments that were payed in 2007 were in the range of 14% to 16% for Executive and management personnel. For Bluecollar personnel the Incremental value stood at 12.55% to 13.5%.
Hence, on the above basis what should be the compensation hike that we can propose to our Organisation. We have to keep in mind the Industry type where we are operating,the region where we are doing the business, the demand of products that we are achieving to increase, the market share whether is getting shrinked or expanded,etc.
i request all of you to contribute your views even if thet are wrong. This will certainly help ourselves to suggest good measures to our respective organisation.
Best Regards,
Ashish[/quote]
From India, Mumbai
In my observation, your concept of compensation review is different from the market pratice in India.
First of all there is no uniformity in our compensation and benefits structure all over India neither they are uniform at regional or local level or within similar industry.
There are five basic tools to compensation (or reward) in organizations.
These are:
1. Base salary,
2. Short-term incentives,
3. Long-term incentives,
4. Employee benefits
5. Perquisites- retirement plans, health insurance, a chauffered limousine, an executive jet, interest free loans for the purchase of housing, etc.
Salary (also now known as fixed pay) is coming to be seen as part of a "total rewards" system which includes variable pay (such as bonuses, incentive pay, and commissions), benefits and perquisites (or perks), and various other tools which help employers link rewards to an employee's measured performance.
A salary is a form of periodic payment from an employer to an employee, which is specified in an employment contract. From the point of a view of running a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.
Wages may be contrasted with salaries, with wages being paid at a wage rate (based on units of time worked) while salaries are paid periodically without reference to a specified number of hours worked. Once a job description has been established, wages are often a focus when negotiating an employment contract between employer and employee.
The six categories of salaried workers exempt from overtime provisions are:
(1) Executive Employees, who hire, fire and direct others;
(2) Administrative Employees, exercising discretion as part of office work;
(3) Learned Professional Employees, such as medical practitioners, lawyers, engineers, dentists, veterinarians, accountants;
(4) Creative Professional Employees in an artistic field;
(5) Computer Employees, who must meet certain threshold tests; and
(6) Outside Sales Employees, who must work away from an employer's place of business. Some of the 2004 exemption tests depend on being paid a weekly salary of greater than $455, even though no hourly minimum wage is required or maximum number of hours worked is established.
Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries.
Fringe benefits can also include but are not limited to: (employer-provided or employer-paid) housing, group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
In addition to the above Cost of living Index provide scope to adjust inflation cost to compensate and restore the relative market worth of the job. In India this apply either to Minimum Wage Workforce and Government Servents who practice this religiously, Other than these some private sector companies also establish cost of living index for updating per point increase in the index to pay in the form of "Variable Dearness Allowance"
Now if we take Industry, Region, National and Market consideration for demand and supply of skills there is not proper mechanism to establish scientifically what should be the job price because no industry practice Job Evaluation process and have mechanism to justify and periodic review or market survey.
There is no national statistics to price the job values and skills.
You are suggesting economic indicators to assess salary and relative increment based on inflation or current economic trends to set trend for increment. But thats totally judgemental approach.
Regards
Sawant
From Saudi Arabia
First of all there is no uniformity in our compensation and benefits structure all over India neither they are uniform at regional or local level or within similar industry.
There are five basic tools to compensation (or reward) in organizations.
These are:
1. Base salary,
2. Short-term incentives,
3. Long-term incentives,
4. Employee benefits
5. Perquisites- retirement plans, health insurance, a chauffered limousine, an executive jet, interest free loans for the purchase of housing, etc.
Salary (also now known as fixed pay) is coming to be seen as part of a "total rewards" system which includes variable pay (such as bonuses, incentive pay, and commissions), benefits and perquisites (or perks), and various other tools which help employers link rewards to an employee's measured performance.
A salary is a form of periodic payment from an employer to an employee, which is specified in an employment contract. From the point of a view of running a business, salary can also be viewed as the cost of acquiring human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.
Wages may be contrasted with salaries, with wages being paid at a wage rate (based on units of time worked) while salaries are paid periodically without reference to a specified number of hours worked. Once a job description has been established, wages are often a focus when negotiating an employment contract between employer and employee.
The six categories of salaried workers exempt from overtime provisions are:
(1) Executive Employees, who hire, fire and direct others;
(2) Administrative Employees, exercising discretion as part of office work;
(3) Learned Professional Employees, such as medical practitioners, lawyers, engineers, dentists, veterinarians, accountants;
(4) Creative Professional Employees in an artistic field;
(5) Computer Employees, who must meet certain threshold tests; and
(6) Outside Sales Employees, who must work away from an employer's place of business. Some of the 2004 exemption tests depend on being paid a weekly salary of greater than $455, even though no hourly minimum wage is required or maximum number of hours worked is established.
Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries.
Fringe benefits can also include but are not limited to: (employer-provided or employer-paid) housing, group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
In addition to the above Cost of living Index provide scope to adjust inflation cost to compensate and restore the relative market worth of the job. In India this apply either to Minimum Wage Workforce and Government Servents who practice this religiously, Other than these some private sector companies also establish cost of living index for updating per point increase in the index to pay in the form of "Variable Dearness Allowance"
Now if we take Industry, Region, National and Market consideration for demand and supply of skills there is not proper mechanism to establish scientifically what should be the job price because no industry practice Job Evaluation process and have mechanism to justify and periodic review or market survey.
There is no national statistics to price the job values and skills.
You are suggesting economic indicators to assess salary and relative increment based on inflation or current economic trends to set trend for increment. But thats totally judgemental approach.
Regards
Sawant
From Saudi Arabia
Well according to me, organisations are already looking at training multi-skills. This can be considered as one of the main criteria for salary revision along with customer satisfaction & business building. Some of the points that can be considered
Managers can be more stringent while declaring variable payouts.
work responsibility to be given more. & then give incentives.
Performance threshold to increase from 60% to 75%
regards
Suman
From India, Bangalore
Managers can be more stringent while declaring variable payouts.
work responsibility to be given more. & then give incentives.
Performance threshold to increase from 60% to 75%
regards
Suman
From India, Bangalore
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